More than 900 staff at Gateway computers will lose their jobs in the biggest single closure of a high-tech firm in the Republic in the last four years.
The shutdown follows the US company's decision to cease operations at its European headquarters in Clonshaugh, Co Dublin.
The Tanaiste, Ms Harney, said last night she would review the policy on issuing work visas to immigrant workers if the number of people signing on the Live Register increased significantly.
The Gateway announcement is the latest in a series of cutbacks and closures which have seen almost 4,000 lose their jobs in high-tech firms here this year.
Management at Gateway Ireland confirmed yesterday that its parent firm in the US was planning to pull out of the Irish and British markets completely, leading to total job losses of almost 1,200.
Mr Mike Maloney, managing director of Gateway Ireland, said the firm would instead refocus in the US.
He said this was part of a corporate strategy designed to return the company to profitability after it posted losses of $20.8 million in the second quarter.
Gateway sales slumped 46 per cent in Europe during this period as consumers have chosen to delay the purchases of computer equipment due to a global economic downturn. These figures have prompted a dramatic restructuring plan by Gateway worldwide.
"The company will not survive by just selling personal computers. It is restructuring itself to develop and sell more services and solutions," said Mr Maloney.
Gateway is likely to formally announce its closure plans following a 30-day consultation with its staff over redundancy payments.
Some jobs may be saved at the facility if negotiations which the company is conducting with IDA Ireland about outsourcing technical support facilities are successful.
Mr Maloney said last night that Gateway had made a commitment to repay all the Government grants it had received.
It is understood this amounts to more than £20 million.
The closure of Gateway's facility will bring the number of redundancies at technology firms to more than 3,500 this year.
Last night, IDA Ireland warned further job losses in the technology sector and even closures were likely over the coming months.
"We're in the middle of a steep industry downturn and I don't think we have seen the last bad news," said Mr Martin Cronin, a director of IDA Ireland.
Speaking on RTE radio last night, Ms Harney said the Government would review its policy on issuing work visas to migrant workers if the numbers signing on the Live Register increased significantly. However, she said the labour market remained strong despite the recent downturn in the economy.
Meanwhile, the Irish Congress of Trade Unions and SIPTU have offered their services to Gateway employees. The plant is not unionised and the company plans to negotiate a redundancy package with an eight-strong in-house employee representative council, elected by secret ballot last week.
Under EU regulations, Gateway is obliged to negotiate with staff representatives but not necessarily trade unions. The only compensation due is statutory redundancy of half a week's pay per year of service for each employee under 41 years, and a full week for those over 41. A Gateway spokeswoman said yesterday that managers would continue to deal directly with employees, as well as facilitating the representative council.